Does Cream have the right to use similar trademarks to Jeni's within my Development Area for other businesses?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
You will not receive an exclusive territory under the Area Development Agreement. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. However, as long as you are in compliance with your Area Development Agreement, all Franchise Agreements signed pursuant to the Area Development Agreement, and subject to the exclusions and limitations described below, neither we nor any of our affiliates will establish or operate or authorize any other person to establish or operate a Jeni's Ice Creams Scoop Shop in your Development Area. Otherwise, you have no territorial protection and we and our affiliates retain all rights to conduct business activities of any kind, including the right to:
(1) establish and operate, and allow others to establish and operate, other Jeni's Ice Creams Scoop Shops using the System, at any location outside the Development Area, on such terms and conditions we deem appropriate;
(2) establish and operate, and allow others to establish and operate, any other type of business, including any business that may offer products and services which are identical to, similar to, or competitive with products and services offered by Jeni's Ice Creams Scoop Shops, under trade names, trademarks, service marks, and commercial symbols other than the "Jeni's®" name and marks, anywhere in the world, including in the Development Area;
Source: Item 12 — TERRITORY (FDD pages 35–39)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, Cream retains significant rights to conduct business activities, including using similar trademarks, within a franchisee's Development Area. Specifically, Cream has the right to establish and operate other types of businesses, even those offering products and services identical, similar, or competitive with Cream's, under different trade names, trademarks, service marks, and commercial symbols other than the "Jeni's®" name and marks. This right extends anywhere in the world, including within a franchisee's Development Area.
This means that a Cream franchisee could face competition from other businesses operated or authorized by Cream, even if those businesses use branding similar to Cream's. These other businesses could sell the same or similar products, potentially impacting the franchisee's market share and revenue. Cream also retains the right to establish businesses and distribution channels other than a Jeni's Ice Creams Scoop Shop, including selling products at retail, wholesale, or through any Digital Presence, wherever located or operating, including in your Protected Territory, regardless of the nature or location of the customers with whom such other businesses and distribution channels do business, including businesses that operate under trade names, trademarks, service marks, or commercial symbols that are similar to, the same, or competitive with the Marks, and/or that sell products or services similar to and/or the same as those that Jeni's Ice Creams Scoop Shops sell, including the offer and sale of Jeni's® -branded ice cream or products at third-party businesses.
Cream is also allowed to conduct marketing, advertising, and promotional activities, including those involving product giveaways and the sale of similar products, within the Development Area. Furthermore, Cream can be acquired by or acquire other businesses, even those competitive with Cream, and continue operating those businesses within the franchisee's territory. These activities can occur at any location worldwide, including within the Development Area.
Prospective franchisees should carefully consider these competitive factors and how they might affect the potential profitability of a Cream franchise. It would be prudent to discuss with Cream the specific plans they have for developing other businesses or distribution channels within the Development Area and to assess the potential impact of such activities on the franchise's performance.